Question for the Money Doctors

Question submitted on Oct 22, 2012.

Question

i have a 28k revolving credit card. pay $370. a month unfortunely the minimum amount. i have had it for 15yrs and i cannot pay it off. and can barely afford the payment.
what kind of help can i qualifty for

Answer

A monthly payment of $370.00 on a debt of $28,000.00 would only pay the interest if the credit card company is charging you slightly less than 16.00%.

The first thing to do is call the credit card company and talk with them about a lower interest rate. Most of the credit card companies will work with you to help you pay your debt. The next thing to do, if in fact you are still using your credit card for purchases, is quit adding new charges to the account.

Without more complete information about your financial situation I can't give you more specific advice. You might however want to talk with a bankruptcy attorney and discuss options for filing bankruptcy under chapter 13. This would allow you and your attorney to work with your creditors to develop a payment plan that would enable you to repay your debt under terms that would require you to live within a budget.

Even with an interest rate of 6.00% it will take you almost eight years to pay the debt in full.

If this is your only debt, I would encourage you to work things out without filing for bankruptcy.